Principal Pivot Series Variable Annuity

One product. Every stage of life.

Principal Pivot Series Variable Annuity

One product. Every stage of life.

What’s next?

The truth is, we never know what’s next. Life is full of changes, and we learn to change with it.  Adapting our financial goals is no different.

From saving and investing to creating financial security for loved ones to planning for retirement—your clients will need the right advice at the right time.  Principal Pivot Series (Pivot) can help. It’s lifecycle product that can help your clients through every step of their financial planning journey.

Benefits of Pivot

Pivot allows your clients to focus on growing their retirement savings with the added ability to:
  • Personalize an investment plan—including 100% equities—with our diverse investment menu
  • Choose from 87 funds with no allocation restrictions
  • Benefit from tax-deferred growth
  • Move funds as financial goals change and pay no extra fees or taxes for moving money between subaccounts
  • Create a well-balanced portfolio for a total annual cost under 2.00%.
  • Choose between death benefit options to personalize legacy planning
  • Create future guaranteed lifetime income at no additional cost
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Let’s talk about our variable annuity solutions!

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A culture of quality

Picking the right investment options can be intimidating for clients, and they’ll look to you for guidance.

It’s good to know you can rely on us to help. We start by providing quality investments to choose from. We’re proud of the vast selection of investment options available in the Principal® Pivot Series Variable Annuity. Their proven history—as illustrated by their Morningstar RatingsTM—can help give clients confidence in their choices.*

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One of the draws of the annuity payouts is that they’re used to pay the property tax, utilities, cable, insurance expenses…they take care of those expenses so your investments can grow.
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58% of the investment options within Principal Pivot Series have an overall Morningstar RatingTM of 4 or 5 stars.1, 2
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15 investment options
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34 investment options
1 Rated as of June 30, 2019.
2 One investment option not rated.

Create an investment strategy that’s right for your client

We understand the importance of choice. We want to provide investors with the opportunity to diversify their portfolios not only by asset class and investment strategy, but also by management style.

We’ve developed three different tracks that are designed to match different investment preferences.

Option 1: Personalized – a build-your-own investment portfolio strategy

By selecting a personalized strategy, clients can create a portfolio based on their investment objectives. There’s no limit to the number of investment options they can choose. And they have the flexibility to move money among their investments when they want.

Option 2: Guided – direction on investments to meet risk profile and investment objectives

If your clients want a little more help, consider the guided strategy. We’ve partnered with Morningstar Investment Management, LLC (Morningstar Investment Management), an industry expert, to create five asset allocation models that best align with individual risk profile and objectives.

Option 3: Thematic – a managed approach to investing and diversification

With a thematic allocation strategy, clients invest to achieve a specific outcome such as target date, target risk, managed volatility or passive investing. This strategy provides six different allocation approaches, each with a mix of stocks, bonds and other investment options. Investments can be actively managed, which means the underlying investments are constantly monitored and reallocated, or passive, which means that you and your clients control and monitor the underlying investments.

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Our Investor guide can help you talk clients through their different options and determine which model might suit them best.

Change with the times

And rest assured that as your client’s goals or risk tolerances change, so can their investment choices. There are no extra fees (or taxes) for moving funds between subaccounts. So clients can reallocate at any time.

Pivot investment performance

Fee-adverse clients?

We know fees are a concern for many investors, that’s why we offer affordable options as part of our fund portfolio. In fact, you can create a well-balanced portfolio for a total annual cost under 2%.

It’s time to rethink variable annuities

The importance of tax-deferral

Pivot offers your clients another tax-deferred savings option. They’ll benefit from compounding interest on both their premium(s) and any interest earned. And there are no IRS contribution limits—so they don’t have to restrict their retirement savings goals.

How your clients' investment could benefit from tax deferral:

Chart showing $100,000 investment with and without tax deferral.

$100,000 investment with and without tax deferral

Initial investment

$100k

Value of taxable investment

$401.7k

Value of tax-deferred investment

$672.8k

After tax

$512.2k

Each investment started with a $100,000 investment compounding 10% per year for 20 years.

The value of the investment that isn't tax-deferred only grows to $401,694 at the end of 20 years because taxes were paid on earnings annually at a tax rate of 28%.

The value of the tax-deferred investment grows to $672,750 at the end of 20 years. Since taxes aren't paid on any potential earnings, the money compounds faster than if it was taxed. Even after taxes, the accumulated value would be $512,380.

Please note the illustration above is hypothetical and doesn’t represent any particular investment. It also can’t be used to predict an expected outcome for your particular situation.

Tax management

A client could also elect to take partial distributions from their annuity rather than a lump sum distribution. This allows the remaining accumulated value to continue to grow tax deferred, and the client doesn’t have to pay taxes all at once. This approach gives you flexibility in managing your client’s taxes.

Potential growth with guarantees

Create guaranteed income while still accumulating. Pivot’s Flexible Pension Builder rider allows your clients to create guaranteed income at a pace that works for them—and without the extra fees often associated with guaranteed income riders.

Income three ways. Pivot’s Flexible Pension Builder rider is automatically issued for clients who meet the age requirements and are the sole owner or annuitant. And we offer them three different ways to lock in their investment gains. Clients can choose the one that works for them.

There are different ways to transfer money into the Flexible Pension Builder:

1

Automatically transfer 3% or 5% of your accumulated value each contract anniversary.

2

Transfer all or a portion of your accumulated value at any time.

3

Choose the market sweep feature.

Fixed period income solutions. The Flexible Pension Builder rider can be used to create lifetime income, but it can also be used to create short-term income solutions for those who need it.

Protecting your clients' legacy

A standard death benefit is automatically issued with Pivot contracts, and clients also have the option of choosing between two enhanced death benefit options.

The death benefit can be an important feature for clients who want to help provide financial security to their beneficiary(ies) but are uninsurable through traditional life insurance. Our death benefits require no underwriting.

Is Pivot right for your clients?

Give us a call!

1-866-309-1623
*Past performance is no guarantee of future results. Morningstar proprietary ratings reflect historical risk-adjusted performance for investment accounts with at least a 3-year performance history and are subject to change each month. Morningstar Ratings™ are calculated from an investment’s three-, five-, and ten-year average annual returns in excess of the 90-day U.S. Treasury bill returns, with appropriate fee adjustments, and a risk factor that reflects performance below the 90-day Treasury bill return. Within each asset class the top 10% of investment accounts receive 5 stars (Highest); the next 22.5% receive 4 stars (Above Average); the middle 35% earn 3 stars (Average); the next 22.5% receive 2 stars (Below Average); and the bottom 10% receive 1 star (Lowest). The Overall Morningstar Rating for an investment is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.
Copyright 2019 Morningstar, Inc. All rights reserved. Part of the investment data contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
For registered representative use only. Not for distribution to the public.
Guarantees are based on the claims-paying ability of Principal Life Insurance Company.
Tax-qualified retirement arrangements, such as IRAs, SEPs and SIMPLE-IRAs are tax deferred. You derive no additional benefit from the tax-deferral feature of the annuity. Consequently, an annuity should be used to fund an IRA, or other tax-qualified retirement arrangement, to benefit from the annuity's features other than tax deferral. These features may include guaranteed lifetime income, death benefits without surrender charges, guaranteed caps on fees and the ability to transfer among investment options without sales or withdrawal charges.
The Principal Pivot Series Variable Annuity is issued by Principal Life Insurance Company and distributed by Principal Securities, Inc, 800-852-4450, member SIPC and/or independent broker/dealers. Securities sold by a Principal Securities, Inc. Registered Representative are offered through Principal Securities, Inc. Principal Life and Principal Securities, Inc. are members of the Principal Financial Group, Des Moines, IA 50392.
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The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, IA 50392.

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